The East-West Corridor experienced modest absorption as its direct vacancy rate currently sits at 22.2 percent. Occupancy levels are rebounding slightly but are still near the record lows reached in 2003.
Sickich signed the largest new lease in the suburban market during the second quarter. The accounting firm will occupy 80,000 square feet at 1415 West Diehl Road in Naperville and will vacate approximately 40,000 square feet at 998 Corporate Boulevard in Aurora. SHC Direct is also relocating and expanding its space at 1815 South Meyers Road in Oakbrook Terrace. The Healthcare Financial Management Association renewed its lease of 23,000 square feet at 2 Westbrook Corporate Center in Westchester.
Investment sales activity was highlighted by RR Donnelly and Sons purchase of 4101 Winfield Road in Warrenville. The publishing and communications company purchased the 167,000 square foot building from M&J Wilkow for $14.7 million. The owners of 1333 Burr Ridge Parkway are marketing the Class A, 151,000 square foot building for sale. The property is 87 percent leased and is expected to attract bids upward of $200 per square foot.
MB Real Estate expects vacancy to increase slightly over the next few quarters. Job growth has not reached the levels necessary to sustain significant absorption as companies reevaluate their space requirements and consider alternative locations.
The East-West submarket encompasses Cook, DuPage, Kane, Kendall, and Will Counties, with major cities including Downers Grove, Lisle, Naperville, and Oak Brook.
For more information regarding the Chicago office market, please reference MB Real Estate's 2nd Quarter 2011 Chicago Market Overview and Submarket Snapshots.
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